Regulatory News:
FY 2024 Highlights
- Revenue of EUR 4,214.0m in 2024, representing year-on-year growth of 1.5% (2.6% on a constant currency basis). In Q4, Group revenue increased by 4.3% to EUR 1,014.2m, driven by organic growth of 1.8%, M&A revenue growth contribution of 1.7%, and FX tailwind of 0.8%.
- Gross profit of EUR 1,031.0m represents year-on-year growth of 4.8% compared to the prior year. Gross profit margin expanded by 77bp to 24.5%, reflecting positive mix effects across our businesses.
- Adjusted EBITA of EUR 470.7m represents a 0.9% increase compared to the prior year, with Adjusted EBITA margin stable at 11.2%. Conversion margin was 45.7% compared to 47.4% in the prior year.
- Free cash flow was EUR 341.8m, implying a cash conversion ratio of 72.1%. The 43.1% year-on-year decline in free cash flow was driven by investments in working capital as demand recovers across the business.
- Reported net profit was stable at EUR 189.5m, and includes EUR 26m of non-cash financial charges related to the impact of hyperinflation accounting as well as the accounting impact of the recent debt refinancing.
- Eight acquisitions completed during the year representing combined prior year revenue of over EUR 140m.
- Leverage ratio was 2.9x at the end of the year, compared to 2.7x at the end of June, and 2.5x at the end of 2023. Net debt incorporates the impact of higher working capital investments in view of positive order book development.
- Launch of Impact 2030 marks the next phase of Azelis' sustainability agenda. The program incorporates comprehensive greenhouse gas emission reduction targets aligned with SBTi guidelines.
- Proposal for a dividend of EUR 54.9m, translating to EUR 0.23 (rounded) dividend per share1
- Although the pace of improvement varies across regions, the positive build-up of the order book since the beginning of the year indicates a continuation of the trend improvements in our business.
(in millions of €) | 2024 | 2023 | Reported
| Constant currency |
Life Sciences | 2,653.5 | 2,565.5 | 3.4% | 4.7% |
Industrial Chemicals | 1,560.5 | 1,586.7 | -1.7% | -0.9% |
Revenue | 4,214.0 | 4,152.2 | 1.5% | 2.6% |
Gross profit | 1,031.0 | 984.1 | 4.8% | 5.9% |
Gross profit margin | 24.5% | 23.7% | 77 bp | 77 bp |
Adjusted EBITDA1 | 512.2 | 500.6 | 2.3% | 3.8% |
Adjusted EBITDA margin | 12.2% | 12.1% | 10 bp | 15 bp |
Adjusted EBITA1 | 470.7 | 466.3 | 0.9% | 2.4% |
Adjusted EBITA margin | 11.2% | 11.2% | -6 bp | -1 bp |
Conversion margin1 | 45.7% | 47.4% | -173 bp | -154 bp |
Net profit | 189.5 | 189.3 | 0.1% | 0.0% |
Cash earnings per share1 | 1.17 | 1.16 | 1.3% | 1.2% |
Earnings per share | 0.74 | 0.74 | 0.1% | -6.5% |
Proposed dividend per share | 0.23 | 0.22 | 3.0% | |
Operating cash flow | 369.2 | 617.6 | -40.2% | |
Free cash flow1 | 341.8 | 601.2 | -43.1% | |
FCF conversion ratio1 | 72.1% | 127.4% | -5531 bp | |
Net working capital revenue normalized for acquisitions1 | 15.9% | 13.4% | 250 bp | |
Leverage ratio1 | 2.9x | 2.5x | 0,4x |
1 Refer to the definitions of Alternative Performance Measures in the Group's Integrated Report
Comment from Anna Bertona, Group CEO: "I'm pleased to share our 2024 results, which underscore the resilience of our business model and our strong position for a return to growth. I'm proud of our teams, who work tirelessly to deliver strong performance across the globe. Despite market headwinds, we have maintained stable profitability while focussing on executing our updated strategy.
We remain committed to our vision of becoming the industry reference in innovation, sustainability and digital. We made further progress towards our ambitious sustainability agenda with the launch of Impact 2030, reflecting our dedication to sustainability as a key accelerator of Azelis' growth strategy.
Recovery is underway in many of our end markets. While the pace of improvement varies by region, market sentiment is gradually improving across our businesses. Although uncertainty remains, Azelis is well-positioned to capitalise on the growth opportunities we expect through 2025."
CONFERENCE CALL
The management of Azelis invites you to a conference call and live webcast at 09:00 CET to discuss our full year results and current operating trends. Please click here to view the webcast.
OPERATIONAL REVIEW
Headline results
Q4
| Q4 | Organic
| Total
| (in millions of €) | 2024 | 2023 | F/X
| M&A
| Organic
| Total
|
437.2 | 415.2 | 0.4% | 5.3% | EMEA | 1,792.7 | 1,793.9 | -1.2% | 2.9% | -1.8% | -0.1% |
356.8 | 338.8 | 5.6% | 5.3% | Americas | 1,536.2 | 1,454.3 | -0.3% | 5.4% | 0.5% | 5.6% |
220.1 | 218.8 | -1.3% | 0.6% | Asia Pacific | 885.1 | 904.0 | -2.1% | 2.5% | -2.5% | -2.1% |
1,014.2 | 972.7 | 1.8% | 4.3% | Group revenue | 4,214.0 | 4,152.2 | -1.1% | 3.7% | -1.1% | 1.5% |
110.7 | 100.8 | 5.1% | 9.8% | EMEA | 462.8 | 468.1 | -1.3% | 2.9% | -2.8% | -1.1% |
90.6 | 82.1 | 10.4% | 10.4% | Americas | 383.2 | 344.3 | -0.4% | 6.1% | 5.6% | 11.3% |
46.1 | 41.1 | 6.8% | 12.0% | Asia Pacific | 185.0 | 171.7 | -2.0% | 4.9% | 4.7% | 7.7% |
247.3 | 224.0 | 7.4% | 10.4% | Group gross profit | 1,031.0 | 984.1 | -1.1% | 4.4% | 1.5% | 4.8% |
47.6 | 42.4 | 6.3% | 12.4% | EMEA | 228.2 | 237.6 | -1.7% | 2.4% | -4.6% | -4.0% |
40.2 | 38.0 | 5.1% | 5.7% | Americas | 189.5 | 184.6 | -0.4% | 6.1% | -3.1% | 2.7% |
22.1 | 18.6 | 11.1% | 18.5% | Asia Pacific | 88.1 | 78.4 | -2.2% | 6.2% | 8.2% | 12.3% |
101.4 | 91.0 | 7.2% | 11.4% | Group adjusted EBITA1 | 470.7 | 466.3 | -1.5% | 4.7% | -2.2% | 0.9% |
1 Total Adjusted EBITA includes Holding companies.
Azelis achieved revenue of EUR 4,214.0m, representing a 1.5% increase over the prior year (+2.6% increase in constant currency), with revenue growth contribution from acquisitions offsetting organic revenue decline and FX headwind for the full year. In the fourth quarter, revenue increased by 4.3% driven by organic revenue growth of 1.8%.
Revenue from Life Sciences increased by 3.4% (+4.7% in constant currency) compared to the prior year, supported by stable organic revenue and contribution from recent acquisitions. Revenue in Industrial Chemicals declined by 1.7% (-0.9% in constant currency), driven by continued weakness in China and Canada, as well as the impact of the Group's portfolio optimisation program.
EMEA
Q4 2024 | Q4 2023 | Reported
| (in millions of €) | 2024 | 2023 | Reported
| Constant
|
437.2 | 415.2 | 5.3% | Revenue | 1,792.7 | 1,793.9 | -0.1% | 1.2% |
110.7 | 100.8 | 9.8% | Gross profit | 462.8 | 468.1 | -1.1% | 0.2% |
25.3% | 24.3% | 103 bp | Gross profit margin | 25.8% | 26.1% | -28 bp | -26 bp |
52.3 | 46.3 | 12.9% | Adjusted EBITDA | 245.7 | 251.7 | -2.4% | -0.7% |
12.0% | 11.2% | 81 bp | Adjusted EBITDA margin | 13.7% | 14.0% | -33 bp | -26 bp |
47.6 | 42.4 | 12.4% | Adjusted EBITA | 228.2 | 237.6 | -4.0% | -2.3% |
10.9% | 10.2% | 69 bp | Adjusted EBITA margin | 12.7% | 13.2% | -52 bp | -46 bp |
43.0% | 42.0% | 99 bp | Conversion margin | 49.3% | 50.8% | -145 bp | -125 bp |
In EMEA, revenue for the full year was stable at EUR 1,792.7m, as revenue growth of 5.3% in the fourth quarter reversed the decline in the first nine months of the year. Organic revenue declined by 1.8% for the full year, with organic revenue growth in the second half reversing part of the decline in the first half of the year. Revenue growth contribution from recent acquisitions of 2.9% offset the organic revenue decline and the 1.2% negative impact from FX translation.
Performance varied across end markets, with Industrial Chemicals performing well driven by volume improvements throughout the year. Trend improvements in Life Science end markets accelerated in the second half of the year, notably in Agricultural and Environmental Solutions (A&ES).
The Group completed five acquisitions in the region in 2024. In March, we acquired Oktrade, strengthening our lateral value chain for the Personal Care market in Turkey. In June, we closed the acquisition of DBH, expanding our footprint in Advanced Materials Additives in the DACH region. In the fourth quarter, we acquired CPS, Hortimex and Haarla Oy, reinforcing our portfolio in Industrial Chemicals in South Africa, Food Nutrition in Poland and the Nordics, respectively. These five companies generated combined revenue of over EUR 110m in the prior year.
Gross profit in EMEA declined by 1.1% (+0.2% in constant currency) to EUR 462.8m, driving a 28bp contraction in gross profit margin to 25.8%, reflecting the mix shift towards Industrial Chemicals during the year. Adjusted EBITA decreased by 4.0% to EUR 228.2m, resulting in a 52 bp contraction in Adjusted EBITA margin due mainly to dilution from new acquisitions as well as labor cost inflation in the region. Conversion margin for the year was 49.3%, representing a 145bp contraction versus the prior year.
Americas
Q4 2024 | Q4 2023 | Reported
| (in millions of €) | 2024 | 2023 | Reported
| Constant
|
356.8 | 338.8 | 5.3% | Revenue | 1,536.2 | 1,454.3 | 5.6% | 5.9% |
90.6 | 82.1 | 10.4% | Gross profit | 383.2 | 344.3 | 11.3% | 11.8% |
25.4% | 24.2% | 116 bp | Gross profit margin | 24.9% | 23.7% | 127 bp | 132 bp |
43.7 | 41.3 | 5.8% | Adjusted EBITDA | 204.2 | 196.1 | 4.2% | 4.5% |
12.2% | 12.2% | 5 bp | Adjusted EBITDA margin | 13.3% | 13.5% | -19 bp | -17 bp |
40.2 | 38.0 | 5.7% | Adjusted EBITA | 189.5 | 184.6 | 2.7% | 3.0% |
11.3% | 11.2% | 3 bp | Adjusted EBITA margin | 12.3% | 12.7% | -36 bp | -34 bp |
44.3% | 46.3% | -198 bp | Conversion margin | 49.4% | 53.6% | -417 bp | -421 bp |
In the Americas, revenue increased by 5.3% in the fourth quarter, bringing revenue for the full year to EUR 1,536.2m, representing growth of 5.6% over the prior year, of which 0.5% was organic, and 5.4% came from revenue contribution from recent acquisitions.
The Group's Life Science business in the region delivered strong growth reflecting progressive improvement in trends across all end markets throughout the year. Performance from Industrial Chemicals remained muted given continued demand weakness in Canada and the impact from an acceleration in the Group's portfolio optimisation program in Colombia, mitigated by the recovery in US CASE.
During the year, Azelis completed the acquisition of Localpack, reinforcing our footprint in Colombia. Localpack generated revenue of over EUR 10m in 2023.
Gross profit in the region increased by 11.3% to EUR 383.2m, driving gross profit margin to 24.9%. The 127bp expansion reflects the positive mix shift towards Life Sciences in the US, as well as margin improvements in Latin America. Adjusted EBITA increased by 2.7% year-on-year to EUR 189.5m, resulting in an Adjusted EBITA margin of 12.3%. The slower growth in EBITA compared to gross profit growth reflects the impact of dilution from Latin America, as well as higher bonus accruals given the improved performance in the region. Conversion margin for the year was 49.4% versus 53.6% in the prior year.
Asia Pacific
Q4 2024 | Q4 2023 | Reported
| (in millions of €) | 2024 | 2023 | Reported
| Constant
|
220.1 | 218.8 | 0.6% | Revenue | 885.1 | 904.0 | -2.1% | 0.0% |
46.1 | 41.1 | 12.0% | Gross profit | 185.0 | 171.7 | 7.7% | 9.7% |
20.9% | 18.8% | 212 bp | Gross profit margin | 20.9% | 19.0% | 190 bp | 187 bp |
24.1 | 20.7 | 16.6% | Adjusted EBITDA | 96.4 | 86.3 | 11.6% | 13.7% |
11.0% | 9.5% | 150 bp | Adjusted EBITDA margin | 10.9% | 9.5% | 134 bp | 134 bp |
22.1 | 18.6 | 18.5% | Adjusted EBITA | 88.1 | 78.4 | 12.3% | 14.5% |
10.0% | 8.5% | 152 bp | Adjusted EBITA margin | 9.9% | 8.7% | 128 bp | 128 bp |
47.9% | 45.2% | 266 bp | Conversion margin | 47.6% | 45.7% | 195 bp | 204 bp |
APAC revenue was EUR 220.1m in the fourth quarter, bringing full-year revenue to EUR 885.1m, representing a 2.1% decline over the prior year. Revenue growth contribution of 2.5% from recent acquisitions mitigated some of the impact of the 2.5% organic revenue decline and 2.1% negative impact from FX translation during the year.
Revenue from Life Sciences in the region was stable, supported by strong performance in Flavours Fragrance, Homecare and Pharma while Industrial Chemicals remained weak especially in China. The results from APAC also include the impact from the Group's portfolio optimisation program, specifically in India, Australia and New Zealand.
In 2024, Azelis acquired Agspec and PT Marga Dwi Kencana, strengthening the Group's lateral value chains for the agricultural market in Australia and the personal care market in Indonesia, respectively. These two companies generated combined revenue of over EUR 20m in 2023.
Gross profit increased by 7.7% to EUR 185.0m, driving gross profit margin to 20.9%. The 190bp expansion reflects the positive mix shift across the business, including the positive margin impact of the portfolio optimisation program. Adjusted EBITA was EUR 88.1m, representing a 12.3% increase, of which 8.2% was organic. The 128bp step-up in Adjusted EBITA margin drove a 195bp increase in conversion margin in the region to 47.6%.
Holding companies
Q4 2024 | Q4 2023 | Reported
| 2024 | 2023 | Reported
| Constant
| |
-8.4 | -7.9 | 5.7% | Adjusted EBITA (in millions of €) | -35.1 | -34.3 | 2.1% | 2.1% |
-0.8% | -0.8% | -1 bp | As of group revenue | -0.8% | -0.8% | -1 bp | 0 bp |
Operating costs at the Group's holding companies, relating to the Group's non-operating entities as well as the head office in Belgium, were EUR 35.1m, compared to EUR 34.3m in the prior year. Relative to revenue, operating costs at the group's holding companies were stable compared to 2023 despite multiple growth initiatives, reflecting our commitment to controlling our costs at all levels across the Group.
OUTLOOK
The market for specialty chemical and food ingredient distribution remains highly attractive. Azelis is confident that it has the right strategy to navigate the challenges, and benefit from the opportunities generated by the trends shaping its industry.
FINANCIAL REVIEW
Q4 2024 | Q4 2023 | Reported
| (in millions of €) | 2024 | 2023 | F/X
| M&A
| Organic
| Total
|
1,014.2 | 972.7 | 4.3% | Revenue | 4,214.0 | 4,152.2 | -1.1% | 3.7% | -1.1% | 1.5% |
247.3 | 224.0 | 10.4% | Gross profit | 1,031.0 | 984.1 | -1.1% | 4.4% | 1.5% | 4.8% |
101.4 | 91.0 | 11.4% | Adjusted EBITA | 470.7 | 466.3 | -1.5% | 4.7% | -2.2% | 0.9% |
Q4 2024 | Q4 2023 | Reported
| (in millions of €) | 2024 | 2023 | Reported
| Constant
|
643.9 | 600.1 | 7.3% | Life Sciences | 2,653.5 | 2,565.5 | 3.4% | 4.7% |
370.2 | 372.6 | -0.6% | Industrial Chemicals | 1,560.5 | 1,586.7 | -1.7% | -0.9% |
1,014.2 | 972.7 | 4.3% | Group revenue | 4,214.0 | 4,152.2 | 1.5% | 2.6% |
247.3 | 224.0 | 10.4% | Gross profit | 1,031.0 | 984.1 | 4.8% | 5.9% |
24.4% | 23.0% | 135 bp | Gross profit margin | 24.5% | 23.7% | 77 bp | 77 bp |
112.0 | 100.6 | 11.4% | Adjusted EBITDA | 512.2 | 500.6 | 2.3% | 3.8% |
11.0% | 10.3% | 70 bp | Adjusted EBITDA margin | 12.2% | 12.1% | 10 bp | 15 bp |
101.4 | 91.0 | 11.4% | Adjusted EBITA | 470.7 | 466.3 | 0.9% | 2.4% |
10.0% | 9.4% | 64 bp | Adjusted EBITA margin | 11.2% | 11.2% | -6 bp | -1 bp |
41.0% | 40.6% | 38 bp | Conversion margin | 45.7% | 47.4% | -173 bp | -154 bp |
51.7 | 33.4 | 54.7% | Net profit | 189.5 | 189.3 | 0.1% | 0.0% |
Revenue
Revenue increased by 4.3% in the fourth quarter, driven by organic revenue growth of 1.8%. This brought full-year revenue to EUR 4,214.0m, representing a 1.5% increase over the prior year, as revenue growth contribution from acquisitions of 3.7% offset the organic revenue decline and the negative revenue impact of FX translation. In 2024, the Group's organic revenue result includes the impact of its continuous portfolio optimisation program, which represented 0.3% of group revenue for the full year 2024.
Revenue in Life Sciences increased by 3.4% (+4.7% in constant currency) to EUR 2,653.5m in 2024, supported by a recovery in the Agricultural Environmental Solutions (A&ES) and Flavours Fragrance market segments, improvements in Personal Care, and continued strong performance in Homecare Industrial Cleaning (HIC). In Industrial Chemicals, revenue declined by 1.7% (-0.9% in constant currency) to EUR 1,560.5m, due mainly to continued weakness in China and Canada, as well as the impact of the Group's portfolio optimisation program.
Profitability
In the fourth quarter, gross profit increased by 10.4% year-on-year to EUR 247.3m, bringing full year gross profit to EUR 1,031.0m, representing an increase of 4.8% over the prior year. The 77bp gross profit margin expansion to 24.5% reflects positive mix effect from higher contribution from Life Sciences.
Adjusted EBITA in the fourth quarter was EUR 101.4m, bringing full year Adjusted EBITA to EUR 470.7m, representing a year-on-year increase of 0.9%. Adjusted EBITA margin remained stable at 11.2%. The slower Adjusted EBITA growth in 2024 reflects salary cost inflation, as well as higher bonus accruals given improving performance especially in the US. Conversion margin in 2024 was 45.7%, compared to 47.4% in the prior year.
Net financial expense for the year was EUR 129.8m, with increased financial income partially offsetting the higher financial expense. This was driven by increased interest expense from higher gross debt, as well as a larger negative impact from FX translation. The Group's financial expense includes EUR 26m of non-cash financial cost from the impact of hyperinflation accounting (EUR 22m) and a one-off non-cash P&L charge of EUR 4m related to transaction costs from previous loans that were recently refinanced. Tax expense in 2024 was EUR 66.6m, implying an effective tax rate of 26.0%, versus 23.4% in 2023, and includes the tax impact of the non-cash costs associated with hyperinflation accounting and fair value adjustment of acquisition-related liabilities, which are not tax-deductible.
Reported net profit for 2024 was stable compared to the prior year at EUR 189.5m, translating to earnings per share (EPS) of EUR 0.74, and cash earnings per share of EUR 1.17.
(in millions of €) | 2024 | 2023 |
Operating profit | 385.9 | 386.9 |
Net financial expense | -129.8 | -139.8 |
Financial income | 48.4 | 17.7 |
Financial expense | -178.2 | -157.4 |
Interest expense on bank loans and overdrafts | -97.8 | -92.8 |
Interest lease commitments | -8.2 | -4.6 |
Other financial cost | -72.2 | -60.1 |
Share of associates' result | 0.0 | 0.1 |
Profit before tax | 256.1 | 247.2 |
Tax expense | -66.6 | -57.9 |
Net profit | 189.5 | 189.3 |
Earnings per share | 0.74 | 0.74 |
Cash earnings per share | 1.17 | 1.16 |
Cash flow and financing
Net working capital to revenue normalised for acquisitions was 15.9% at the end of 2024, versus 15.4% at the end of June, and 13.4% at the end of 2023. The increase in the Group's working capital investments was mainly driven by higher inventory levels to support demand recovery.
Free cash flow decreased by 43.1% to EUR 341.8m, driven by higher investments in working capital as volumes continue to recover. This drove the FCF conversion ratio to 72.1% in 2024, compared to the exceptional level of 127.4% achieved in 2023, when weak demand required limited working capital outlay.
At the end of December 2024, net debt was EUR 1,532.0m, reflecting lower operating cash flows driven by higher investments in working capital consistent with a strengthening of the order book. Leverage ratio stood at 2.9x, versus 2.7x at the end of June 2024, and 2.5x at the end of December 2023. In September, Azelis issued EUR 600m 4.75% 5Y Senior Unsecured Notes and a new EUR 600m Term Loan B to refinance its EUR 1.05bn loan facilities expiring in 2026, extending the majority of its debt maturity to 2029. Furthermore, the Group also re-paid EUR 78.5m of its remaining EUR 108.5m Schuldschein loans in December. At the end of the period, the Group had liquidity of EUR 803.9m in cash and unused credit facilities.
(in millions of €) | 2024 | 2023 |
Operating cash flow | 369.2 | 617.6 |
Free cash flow | 341.8 | 601.2 |
FCF conversion | 72.1% | 127.4% |
Net working capital revenue normalized for acquisitions | 15.9% | 13.4% |
Net indebtedness | 1,532.0 | 1,275.4 |
Leverage ratio | 2.9x | 2.5x |
NON-FINANCIAL PERFORMANCE
In January 2025 Azelis launched Impact 2030, the next phase of its long-term sustainability program, leading the industry in environmental stewardship, social responsibility, and ethical governance. The program is built on four pillars and incorporates SBTi-guided greenhouse gas emission reduction targets:
- Portfolio ensures sustainable products, solutions, and procurement by partnering with like-minded principals and enhancing product transparency.
- Environment covers decarbonisation, climate risk, and environmental stewardship, addressing full supply chain emissions (Scopes 1, 2, and 3) related to Azelis with clear disclosure and Science Based Targets.
- People embeds workforce development, a culture of care, and diversity, equity, and inclusion into sustainability efforts.
- Governance upholds high ethical and fair business practices in our daily operations without exception.
Impact 2030 enables customers to gain greater product transparency for better choices and principals to accelerate their sustainability strategies. The program aims to reduce greenhouse gas emissions and foster sustainable innovation, with a focus on effective governance, the wellbeing of Azelis' employees, as well as on creating positive impacts across the supply chain and the communities in which we operate.
Details of the program will be provided in Azelis' Integrated Report 20241, which contains information on both financial and non-financial performance.
- To be published 6 March 2025
FINANCIAL CALENDAR
Date | Event |
6 March 2025 | 2024 Integrated report |
24 April 2025 | Q1 2025 trading update |
8 May 2025 | Annual General Meeting 2025 |
27 June 2025 | Ex-dividend date |
30 June 2025 | Dividend record date |
1 July 2025 | Dividend payment date |
31 July 2025 | Half year 2025 results |
23 October 2025 | Q3 2025 trading update |
ALTERNATIVE PERFORMANCE MEASURES
Throughout its financial communication (annual and interim reports, website, press releases, presentations, etc.), Azelis presents certain financial measures and adjustments that are not in accordance with IFRS, or any other internationally accepted accounting principles. Certain of these measures are termed 'alternative performance measures' ("APM's") because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. For more information regarding these APMs, including definitions and calculation methodology, refer to the section 'alternative performance measures' in the Azelis Group Integrated reports.
APPENDIX
All figures and tables contained in the appendix have been compiled in accordance with the IFRS accounting and valuation principles, as adopted within the European Union.
Statutory auditor's note on the consolidated financial information for the year ended 31 December 2024
The statutory auditor, PwC Bedrijfsrevisoren BV Reviseurs d'Entreprises SRL, represented by Peter Van den Eynde, has substantially completed the audit of the Azelis Group NV draft consolidated statements, which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information, and which is characterised by a consolidated statement of financial position total of EUR 5,762,880 thousand and a profit for the year of EUR 189,468 thousand. The audit has not to date revealed any material misstatement in the draft consolidated statements, and the accounting data reported in this press release is consistent, in all material respects, with the draft accounts from which it has been derived.
The Integrated Report 2024 including the full audit report of the statutory auditor will be published on 6 March 2025.
Consolidated income statement for the period ended 31 December
(in thousands of €) | 2024 | 2023 |
Revenue | 4,214,014 | 4,152,225 |
Other operating income | 23,956 | 23,448 |
Total income | 4,237,970 | 4,175,673 |
Costs for goods and consumables | -3,206,924 | -3,191,553 |
Gross profit | 1,031,046 | 984,120 |
Employee benefits expenses | -314,552 | -303,793 |
External services and other expenses | -215,646 | -192,325 |
Depreciation of tangible assets | -41,478 | -34,339 |
Amortization of intangible assets | -73,444 | -66,760 |
Operating profit loss (-) | 385,926 | 386,903 |
Financial income | 48,376 | 17,674 |
Financial expenses | -178,213 | -157,439 |
Net financial expense | -129,837 | -139,765 |
Share of result of associates | 19 | 100 |
Profit loss (-) before tax | 256,108 | 247,238 |
Income tax income expense (-) | -66,640 | -57,926 |
Net profit loss (-) for the period from continuing operations | 189,468 | 189,312 |
Attributable to: | ||
Equity holders of the parent | 180,693 | 177,704 |
Non-controlling interests | 8,775 | 11,608 |
Net profit loss (-) for the period | 189,468 | 189,312 |
in | in | |
Basic earnings per share | 0.74 | 0.74 |
Diluted earnings per share | 0.74 | 0.74 |
Consolidated statement of financial position
(in thousands of €) | 31 December,
| 31 December,
|
Assets | ||
Goodwill | 2,536,844 | 2,409,251 |
Intangible assets | 1,391,781 | 1,349,133 |
Property, plant and equipment | 66,063 | 73,577 |
Right of Use assets | 161,546 | 123,048 |
Investments in associates | 254 | 285 |
Other financial assets | 1,388 | 7,749 |
Deferred tax assets | 22,100 | 15,693 |
Total non-current assets | 4,179,976 | 3,978,736 |
Inventories | 677,945 | 562,790 |
Trade and other receivables | 589,031 | 521,896 |
Income tax receivables | 11,379 | 23,872 |
Other financial assets | 604 | 60 |
Cash and cash equivalents | 303,945 | 484,874 |
Total current assets | 1,582,904 | 1,593,492 |
Total assets | 5,762,880 | 5,572,228 |
Equity | ||
Share capital | 5,880,000 | 5,880,000 |
Reserves | -3,880,188 | -3,927,077 |
Retained earnings | 695,633 | 459,372 |
Unappropriated result | 180,693 | 177,704 |
Issued capital and reserves attributable to owners of the parent | 2,876,138 | 2,589,999 |
Non-controlling interests | 44,008 | 86,579 |
Total equity | 2,920,146 | 2,676,578 |
Loans and borrowings | 1,613,916 | 1,550,634 |
Lease obligations | 134,475 | 100,347 |
Employee benefit obligations | 13,882 | 13,637 |
Provisions | 2,517 | 3,158 |
Other non-current liabilities | 33,166 | 69,816 |
Deferred tax liabilities | 225,904 | 218,306 |
Total non-current liabilities | 2,023,860 | 1,955,898 |
Bank overdrafts | 19,146 | 18,286 |
Loans and borrowings | 47,175 | 80,560 |
Lease obligations | 29,278 | 26,271 |
Provisions | 2,487 | 3,670 |
Income tax payables | 20,221 | 11,495 |
Trade and other payables | 700,567 | 799,470 |
Total current liabilities | 818,874 | 939,752 |
Total liabilities | 2,842,734 | 2,895,650 |
Total equity and liabilities | 5,762,880 | 5,572,228 |
Consolidated statement of cash flows
(in thousands of €) | 2024 | 2023 |
Cash flows from operating activities | ||
Net profit loss (-) for the period | 189,468 | 189,312 |
Adjustments for: | ||
Depreciation, amortization and impairment expenses | 114,922 | 101,099 |
Net financial expense | 129,837 | 139,765 |
Cost of share-based payment | 1,278 | 1,373 |
Income tax income expense | 66,640 | 57,926 |
Share of result of associates | -19 | -100 |
Change in inventories | -98,108 | 123,604 |
Change in trade and other receivables and other investments | -55,167 | 79,347 |
Change in trade and other payables | 22,713 | -77,762 |
Change in provisions | -2,337 | 3,011 |
Cash flow from operating activities | 369,227 | 617,575 |
Interest received | 14,824 | 10,689 |
Income tax paid | -61,112 | -103,166 |
Net cash flow from operating activities | 322,939 | 525,098 |
Cash flow from investing activities | ||
Acquisition of property, plant and equipment and intangible assets | -13,877 | -15,485 |
Acquisition of subsidiaries, net of cash acquired | -241,453 | -584,570 |
Net cash flow from investing activities | -255,330 | -600,055 |
Cash flows from financing activities | ||
Payments of lease obligation | -38,073 | -28,704 |
Acquisition of non-controlling interests | -53,397 | |
Dividend payment to shareholders of the group | -53,311 | -67,772 |
Purchase of treasury shares | -2,507 | -3,408 |
Capital increase | 200,000 | |
Expenses related to capital increase | -2,234 | |
Interest paid | -122,410 | -99,337 |
Proceeds from loans and borrowings | 1,281,601 | 768,147 |
Repayments of loans and borrowings | -1,237,254 | -453,376 |
Transaction costs related to loans and borrowings | -13,037 | -8,074 |
Other cash flows from financing activities | -8,606 | -320 |
Net cash flow from financing activities | -246,994 | 304,922 |
Net (decrease) increase in cash and cash equivalents | -179,385 | 229,964 |
Effect of exchange rate fluctuations on cash held | -2,404 | -1,125 |
Cash and cash equivalents minus Bank overdraft at beginning of the period | 466,588 | 237,748 |
Cash and cash equivalents minus Bank overdraft at 31 December | 284,799 | 466,587 |
Condensed notes to the consolidated financial statements
Business combinations
The Group completed eight acquisitions during 2024. In 2024, these acquisitions together added €58.6 million of revenue, €11.2 million of adjusted EBITA and €5.4 million of net profit to the Group's net result. If these acquisitions would have occurred at the start of 2024, management estimates that, for 2024, the consolidated revenue would have been €4,312.5 million, the consolidated adjusted EBITA would have been €481.3 million and the consolidated net result for the year would have been €198.6 million.
Inventories
(in thousands of €) | 2024 | 2023 |
Inventories | 714,574 | 619,636 |
Valuation allowance/write downs | -36,629 | -56,845 |
Net carrying amount of inventories | 677,945 | 562,790 |
Trade and other receivables
(in thousands of €) | 2024 | 2023 |
Trade receivables | 496,379 | 444,863 |
Other receivables | 92,653 | 77,033 |
589,031 | 521,896 | |
Loans and borrowings
2024 | |||||
(in thousands of €) | Interest rate
| Interest rate
| Expiration | Notional
| Carrying
|
EUR term loan | 3.20% | 1.90% | 2029 | 600,000 | 592,664 |
Revolving Credit Facility | n/a | 1.65% | 2029 | 0 | 0 |
Bond 2023 | 5.75% | n/a | 2028 | 400,000 | 395,083 |
Bond 2024 | 4.75% | n/a | 2029 | 600,000 | 595,663 |
Schuldschein | 2,64% (variable) 4.74% (fixed) | 2.55% | 2027 2029 | 30,000 | 29,949 |
Other bank loans | 1,00% 14,56% | n/a | 2026 | 23,698 | 23,698 |
Accrued interest | 24,032 | 24,032 | |||
1,677,730 | 1,661,091 | ||||
Non-current borrowings and loans | 1,630,555 | 1,613,916 | |||
Current borrowings and loans | 47,175 | 47,175 | |||
1,677,730 | 1,661,091 | ||||
2023 | |||||
(in thousands of €) | Interest rate
| Interest rate
| Expiration | Notional
| Carrying
|
First lien | 4.07% | 1.90% | 2026 | 900,000 | 896,911 |
First lien GBP | 5.26% | 2.15% | 2026 | 148,196 | 147,623 |
Revolving Credit Facility | n/a | 1.65% | 2028 | 0 | 0 |
Bond 2023 | 5.75% | n/a | 2028 | 400,000 | 392,478 |
Schuldschein | 2.64%-3.92% (variable fixed) | 1.9%-2.5% | 2025-2029 | 108,500 | 108,439 |
Other bank loans | 0,50% 17,62% | n/a | 2026 | 59,215 | 59,215 |
Accrued interest | 26,528 | 26,528 | |||
1,642,439 | 1,631,194 | ||||
Non-current borrowings and loans | 1,561,879 | 1,550,634 | |||
Current borrowings and loans | 80,560 | 80,560 | |||
1,642,439 | 1,631,194 | ||||
Net financial expenses
(in thousands of €) | 2024 | 2023 |
Financial income | ||
Interest income | 14,824 | 10,689 |
Gains on financial instruments at FV through P&L | 32,451 | 6,663 |
Other financial income | 1,101 | 321 |
48,376 | 17,674 | |
Financial expenses | ||
Interest expense on loans and borrowings | -97,770 | -92,805 |
Interest lease commitments | -8,206 | -4,562 |
Transaction costs for bank loans | -7,558 | -3,113 |
Losses on changes in fair value of derivatives | -4,657 | -6,741 |
Monetary loss on hyperinflation | -22,055 | -21,071 |
Foreign exchange losses | -12,119 | -7,677 |
Other financial expenses | -25,848 | -21,470 |
-178,213 | -157,439 | |
NOTES AND DISCLAIMER
About Azelis
Azelis is a leading global innovation service provider in the specialty chemical and food ingredients industry present in 65 countries across the globe with over 4,300 employees. Our knowledgeable teams of industry, market and technical experts are each dedicated to a specific market within Life Sciences and Industrial Chemicals. We offer a lateral value chain of complementary products to more than 62,000 customers, supported by +2,800 principal relationships, creating a turnover of €4.2 billion (2024). Azelis Group NV is listed on Euronext Brussels under ticker AZE.
Across our extensive network of more than 70 application laboratories, our award-winning teams help develop formulations and provide technical guidance throughout the customers' product development process. We combine a global market reach with a local footprint to offer a reliable, integrated, and unique digital service to local customers and attractive- business opportunities to principals. Top industry-rated by Sustainalytics, Azelis is a leader in sustainability. We believe in building and nurturing solid, honest, and transparent relationships with our people and partners.
Impact through ideas. Innovation through formulation.
Important disclaimer
This press release may contain statements relevant to Azelis Group NV (the "Company") and/or its affiliated companies (collectively "Azelis" or the "Azelis Group") which are not historical facts, contain wording like "potential", "believes", "anticipates", "expects", "intends", "plans", "seeks", "estimates", "may", "will", "continue" and similar expressions, and are hereby identified as "forward-looking statements". Such forward-looking statements, include, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs, and income, in each case relating to the Azelis Group.
The forward-looking statements and estimates contained herein represent the judgment of and are based on the information available to the Board of Directors and the Company's management as of the date of this press release. They are subject to a number of known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, financial condition, performance or achievements, or industry results to differ materially from those expressed or implied by the forward-looking statements.
These forward-looking statements should not be considered as guarantees for the future performance of the Azelis Group and should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements. These include without limitation global spread and impact of military conflicts and pandemics, changes in economic, and business cycles, the terms and conditions of the Azelis' financing arrangements, foreign currency rate fluctuations, competition in Azelis' key markets, acquisitions or disposals of businesses or assets, potential or actual data security breaches, changes in laws and regulations, changes or uncertainties in tax laws or the administration thereof, hiring and retention of employees, and trends in Azelis' principal industries or economies. Azelis efforts to acquire and integrate businesses may not be as successful as Azelis may have believed at the moment of acquisition. Last but not least, a breakdown, cyberattack or information security breach could compromise the confidentiality, integrity and availability of Azelis' data and systems.
The foregoing list of important factors is not exhaustive. When considering forward-looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in any other document published by the Company with the Belgian Financial Services and Markets Authority (FSMA) or on the Azelis website from time to time. No undue reliance should be placed on such forward-looking statements, which are relevant only as of the date of this publication and do not reflect any potential impacts from the evolving military conflicts, pandemics or other adversity, unless indicated otherwise. Except as required by the FSMA, Euronext, or otherwise in accordance with applicable law, the Company disclaims any obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Certain financial information in this press release has been rounded according to established commercial standards. As a result, this press release may show minor rounding differences versus comparable periods as presented earlier. Pursuant to Belgian Law, Azelis is required to prepare this press release in Dutch. Azelis has also made this report available in English.
1Based on 2024 net profit attributable to equity shareholders of EUR 180.7m and 243.5m shares outstanding as of 31/12/2024.
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Contacts:
Azelis Investor Relations
T: +32 3 613 01 27
E: investor-relations@azelis.com
